Reliance Industries Ltd has received government approval for laying six petroleum product pipelines to evacuate products from its 33 million tpa Jamnagar refinery in Gujarat.

According to the petroleum ministry, Reliance subsidiary Gas Transportation and Infrastructure Co (GTICL) has been issued right of user (RoU) for Jamnagar-Patiala, Jamnagar-Kanpur, Goa-Hyderabad, Chennai-Bangalore, Kakinada-Vijayawada and Haldia-Ranchi product pipelines. The decision would help the company to supply petroleum products to its existing 280 petrol and diesel retailing stations. The company already has secured approval for setting up 5,849 retail outlets all over the country.

As per the RoU granted to Reliance, the first right of use for the common carrier capacity in these pipelines will be reserved for any party other than the owner of the pipeline. The ministry stated: “If capacity is available out of the common carrier capacity, the owner may utilise the same with the stipulation that should any other party seek transportation through common carrier capacity, the owner would vacate and make available the common carrier capacity up to the designated level immediately.”

The permission to acquire RoU is subject to GTICL starting the pipelines within three years from the sanction date. As a surety for commissioning the projects on time, GTICL has to furnish an irrevocable bank guarantee of two per cent of the project outlay or Rs.2 lakh per km, whichever is higher.